Legal Services Act

Legal process outsourcing has taken a further step forward in England and Wales with a trio of announcements – two of which are aimed at the personal injury (PI) market. Both PI initiatives are particularly aimed at helping insurers and brokers handle “low value, low treatment” claims before they progress into a legal process.

The second part of our interview with Professor Richard Susskind on the publication of an updated edition of his book, The End of Lawyers?, looks at ABSs, the threat of legal publishers entering legal services, and why he is next training his sights on the professions generally.

The Cabinet’s reducing regulation committee has given alternative business structures (ABSs) the green light and they will happen on 6 October 2011, justice minister Jonathan Djanogly confirmed today. Mr Djanogly said “no one should be under the illusion that I wish to delay ABS introduction, and all lawyers should be preparing for its introduction”.

The will-writing debate moved towards the end-game today after the Legal Services Consumer Panel launched its investigation into whether the industry should be regulated. However, the Legal Services Board is currently trying to secure £110,000 in funding for the panel to undertake market research.

The Solicitors Regulation Authority and Bar Standards Board are in discussions about creating a joint online consumer network involving the general public, Legal Futures has learned. The move follows pressure from the Legal Services Consumer Panel for the frontline regulators to improve engagement with consumers

The Law Society has rejected Legal Services Board (LSB) calls to introduce a lay majority on the board of the Solicitors Regulation Authority before 2013, Legal Futures can reveal. The move is likely to lead to a stand-off with the LSB that could end up in the courts, with the society warning that it reserves the right to challenge any formal action which the LSB takes against it as a result.

The “golden age” is over for barristers as the Bar faces falling income and shrinking numbers, a new report has claimed. However, the Bar still has “an enormous amount in its favour”, according to leading legal consultancy Jomati, which also found evidence of a correlation between the best-performing sets and large numbers of QCs and marketing staff.

Law firms that fail to embrace “legal process management” will quickly lose out to new competitors, such as accounting firms, legal publishers and businesses fuelled by external investment, Professor Richard Susskind has warned. The legal IT and strategy guru has also criticised the approach of many large firms to making cuts during the recession.

There is a £15bn market in consumer and small business legal services and big brands “have the potential to dominate” it in the future, a senior representative of Royal Bank of Scotland (RBS) said this week.

Some of the biggest brand names in the UK will shortly have access to a legal advice and assistance package for their customers costing around £50 a year, Legal Futures can reveal. CPP Group plc, which provides services via over 200 businesses worldwide – including Tesco, Marks & Spencer, Barclays and HSBC – has developed a product which will give consumers access to everyday consumer advice, a range of legal services, and relevant membership discounts and offers.

Lawyers will have a maximum of eight weeks to resolve complaints before the Legal Ombudsman will agree to investigate, the new service has confirmed, but it may ask them why they did not deal with them even quicker.

Our weekly round-up of other useful news and articles highlights worries that criminals are targeting failing law firms, accountants wanting more of the legal services market, concerns over new conflicts rules, a call to change the terms of PII cover, the need for more ethics guidance around LPO and much more.

The Solicitors Regulation Authority has been forced “under duress” to approve a rule change under which solicitors will have to inform existing clients of their right to complain to the Legal Ombudsman, despite efforts to persuade the Legal Services Board to change its position.

The Solicitors Regulation Authority is to revisit at its next meeting the question of whether to relax its rules on preparations in advance of the launch of alternative business structures next October.

A range of law firms and commercial interests have been wining and dining representatives of the Legal Services Board (LSB), according to information released to Legal Futures under the Freedom of Information Act.